A fuzzy-AHP multi-criteria decision-making model for procurement process

The purpose of this study is to develop a fuzzy‐AHP multi‐criteria decision‐making model for procurement process. It aims to measure the procurement performance in the automotive industry. As such measurement of procurement will enable competitive advantage and provide a model for continuous improvement. The rapid growth in the market and the level of competition in the global economy transformed procurement as a strategic issue; which is broader in scope and responsibilities as compared to purchasing. This study reviews the existing literature in procurement performance measurement to identify the key areas of measurement and a hierarchical model is developed with a set of generic measures. In addition, a questionnaire is developed for pair‐wise comparison and to collect opinion from practitioners, researchers, managers etc. The relative importance of the measurement criteria are assessed using analytical hierarchy process (AHP) and fuzzy‐AHP. The validity of the model is confirmed with the results obtained.